Cash Inventory Land Common stock retained earnings $ 6,900 15,000 7.000 15,000 13,900 During Year 2, the company experienced the following events: 1. Purchased Inventory that cost $5,200 on account from Ross Company unde terms 110, 1/30. The merchandise was delivered FOB shipping point. Freight costs of $190 were paid in cash. 2. Returned $400 of the inventory it had purchased from Ross Company because the inventory was damaged in transit The seller agreed to pay the return freight cost. 3. Paid the amount due on its account payable to Ross Company within the cash discount period. 4. Sold Inventory that had cost $6,800 for $12,100 on account, under terms 2/10,n/45. 5. Received merchandise returned from a customer. The merchandise originally cost $900 and was sold to the customer for $1,680 cash. The customer was paid $1,680 cash for the returned merchandise. 6. Delivered goods FOB destination in Event 4. Freight costs of $140 were paid in cash 7. Collected the amount due on the account receivable within the discount period. 8. Sold the land for $8.500 9. Recognized accrued interest income of $600. 10. Took a physical count indicating that $13,400 of inventory was on hand at the end of the accounting period. (Hint: Determine the current balance in the inventory account before calculating the amount of the inventory write down) wired information 5.200 Mercnandise inventory Accounts payable 5.200 190 1b Merchandise inventory Cash 190 400 02 Accounts payable Merchandise inventory DO 400 > 4,800 3 Accounts payable Sales discounts 48 $ 4,752 5 3b Cash 12.100 4 Accounts receivable Soles revenue OO 12.100 8.800 7 40 Coot of goods sold Merchandise inventory 0.800 6 * $ 4 % 5 & 7 9 8 3 6 Hequired information B 5a 1,680 Sales returns and allowances Accounts receivable S 5 1.680 9 5b 900 Merchandise inventory Cost of goods sold 900 10 06 140 Cost of goods sold Cash 140 11 70 Sales discounts 3 210 12 le 0 10.110 Cash Accounts receivable 10.100 13 OB 1,500 Cash Lan 8.500 10 00 000 Introcratie Intervenue 20 s Proy Next